Press Release: Concerned New York Cannabis Leaders Unite to Launch The Cannabis Conference

Diverse Coalition of Stakeholders Releases 2024 Legislative Priorities to Fix Faltering Adult-Use Market & Support Long-Overlooked Medical Program

Click here To Download The Cannabis Conference’s Priorities

ALBANY NY – A coalition representing a variety of interests in New York’s cannabis industry today announced the launch of The Cannabis Conference – a unique and united effort to work with elected officials to implement solutions to ongoing challenges in the medical and adult-use markets.

The Cannabis Conference is advancing 12 priorities to help fix the flawed and delayed rollout of New York’s recreational retail cannabis market, while also protecting patients and improving access to the long-overlooked medical cannabis program.

The Conference’s priorities include a series of commonsense tax reforms that will remove unnecessary and onerous burdens for both adult-use and medical operators and consumers – most notably support of the governor’s proposed repeal and replacement of the potency tax. In addition, the Conference is advancing the creation of a relief fund for struggling cannabis farmers and a tax credit for processors, both of which are necessary to protect critical components of the cannabis industry. The Conference also supports the codification of the CAURD program to protect equity licensees and applicants against further future legal challenges.

Founding Members of The Cannabis Conference include:

Association of New York Cannabis Processors
Black Cannabis Industry Association
Cannabis Farmers Alliance
New York Cannabis Retail Association
New York Medical Cannabis Industry Association

“The MRTA laid the groundwork for the most equitable, expansive adult use cannabis market in the world. Well over two years later, we have achieved only a small fraction of our potential. All of us here today created the Cannabis Conference in order to closely work with our fellow associations on what matters most to our nascent industry,” said John Vavalo, President of the Association of New York Cannabis Processors. “We would ask that the State partner with us and use our combined experiences as a resource to help us move toward the success we all know New York can and should be.”

“The Black Cannabis Industry Association joins this conference of concerned associations in order to promote the equity goals inherent in the MRTA,” said Musa Zwana, Founder of the Black Cannabis Industry Association. “We are seeking to ensure that OCM fulfills that promise through transparency and the disclosure of demographic data for adult use license types. We believe the members of this conference are dedicated to the goals of equity and fairness that our Association was founded to secure.”

“The Cannabis Conference has identified solutions to fix ongoing industry challenges, including ways to support the viability of our cannabis farms. Without the farmers, there is no cannabis. And our farmers need relief now,” said Jeanette Miller, Co-Founder/President of the Cannabis Farmers Alliance (CFA). “By taking a collaborative approach to ensure our industry remains viable, New York can support the entire supply chain, invigorate our local economies, and unlock the full potential of our cannabis industry. We look forward to working with our partners in state government to make that happen.”

“If New York is going to create a world-class cannabis market, we need all aspects of the cannabis marketplace working together,” said Britni Tantalo, President of the New York Cannabis Retail Association. “The Cannabis Conference is the kind of collaborative effort we need to develop a vibrant cannabis industry.”

“Members of New York’s cannabis community have too often been at odds, distracting our efforts from the goal we all share – creating a safe, economically viable, and equitable cannabis market,” said New York Medical Cannabis Industry Association Chair Bryan Murray. “Creation of The Cannabis Conference has helped bridge these gaps and enabled us to focus on improving the market, which is in everyone’s best interest – particularly patients and adult-use consumers.”

***

CANNABIS CONFERENCE FULL 2024 PRIORITIES LIST

Cannabis Tax Reform & Financial Support
1. Farmer’s Relief Fund. According to an industry survey, 97% of cannabis farmers are operating at a loss. Without immediate fiscal relief for farmers, the cannabis market is facing a supply chain collapse. A relief fund for farmers is a matter of survival for not just farmers, but the industry.
2. Reform the Potency Tax: The potency tax, when written into the MRTA, was the first of its kind. In the time since New York’s adult-use market has come online, we have seen this tax act as a massive impediment to the industry. It is onerous to track licensees, and the artificial costs associated with it act as a deterrent to customers who have all-too-easy access to illicit stores statewide. We applaud the efforts of both the Governor and legislature in advancing language to repeal and replace this tax with something less burdensome and look forward to the signing and implementation of a more standardized rate.
3. Repeal the Medical Cannabis Excise Tax: New York’s medical cannabis program is one of the most expensive and inaccessible in the country. With the robust, tax-free illicit market flourishing and causing patient attrition and the anticipated comprehensive launch of the state’s adult-use program, it’s more important than ever to protect patient access to the medical program. Eliminating the 7% excise tax on medical cannabis will reduce costs for patients and protect patient access to a safe alternative to addictive opioids and unregulated cannabis.
4. Establish a Processor Tax Credit: New York has previously recognized the need to uplift the craft beverage industry- this has been accomplished in part through an extensive tax credit tied to gallons of alcohol produced. We would call on the Governor and legislature to mirror this in the cannabis industry. This can be accomplished through establishing a refundable tax credit to licensed processors, based on milligrams of THC in both edibles and concentrates. This tax credit, which would expire a year after becoming law, would allow cash-strapped processors to aid small farmers, expand their own operations, and hire more New Yorkers.

Relief for Microlicensees. As many farmers transition from cultivation to microlicenses there is a strong need to ensure that the restrictive rules of cultivation are not transferred to microlicenses, which are much smaller cultivators. A larger radius of operations, authorization to sell other microlicensee products, a delivery-only option for microlicensees, and provide various forms of operational and regulatory relief for this license type.
Codify the CAURD Program. The CAURD program has been the target of legal challenges since its establishment. To enable this program to move forward, and to protect the millions of dollars in private investments pending CAURD applicants and licensees have made to establish a legal cannabis retail business, we urge the Governor and Legislature to establish the CAURD program in statute in early 2024. Any delay risks further lawsuits, which could drive some applicants and licensees into bankruptcy.
Remove Unnecessary Marketing Restrictions. The marketing rules established in regulations by the Office of Cannabis Management place unworkable, unnecessary, and counter-productive limits on the ability of the cannabis industry to promote retail stores and cannabis products. The cannabis marketplace should be allowed to advertise in a manner consistent with alcohol, a product that is much more dangerous than cannabis and yet is free from the onerous restrictions that OCM has applied to cannabis.
Shut Down Illegal Retail Operators. Depending on the source, it is estimated that there are hundreds to many thousands of illegal cannabis retailers operating with impunity in New York State. These illegal stores don’t pay taxes, don’t abide by union labor rules, don’t sell safe products, and make the establishment of a legal cannabis retail market next to impossible. The Governor and Legislature must enact stronger laws that give OCM and local criminal justice authorities the ability to quickly shut down these illegal operators.
Place a Retailer and a Processor on the CAB. The state Cannabis Advisory Board, established in statute, is a vehicle for providing OCM and state policymakers with input from diverse communities and every aspect of the cannabis marketplace. Unfortunately, this 13-member board has no retail representative, and no processor representative. The Governor and Legislature should amend the law to require that a retail and processer be added to ensure their perspectives are heard.
Allow Out-of-State Medical Patient Reciprocity. Recognizing access to out-of-state medical patients who find themselves in New York will increase the accessibility of the medical program for those who need it. New York’s neighboring states and Nevada, Michigan, Ohio, and Missouri already allow reciprocity with other states’ medical cannabis programs. As New York is one of the most visited states in the country and has many commuting for work each week, this policy would significantly improve the accessibility of medical cannabis.
Authorize Insurance Coverage for Medical Cannabis Patients. For thousands of patients, medical cannabis is safe and more effective than other drugs, especially opioids, but cost remains the primary barrier to patient access in New York’s medical cannabis program. Access to medical cannabis should not be limited to those who can pay out of pocket. This policy adds medical cannabis to four publicly funded health programs and would be a game changer for improving the accessibility and affordability of medicinal cannabis.
Allow Pharmacists to Certify Medical Cannabis Patients. Allowing pharmacists to certify medical cannabis patients would make New York’s medical cannabis program a national leader in terms of improving access and affordability. This would streamline the process of becoming a certified medical cannabis patient by allowing walk-ins and consultations with pharmacists for same-day access to medicinal cannabis. With pharmacists on-site in every medical cannabis dispensary throughout the state already, this is a logical way to expand the program.
Establish a Publicly Funded Cannabis Social Equity Fund. New York attempted to support cannabis social equity licensees through a mostly privately funded social equity fund administered by the Dormitory Authority of the State of New York (DASNY). That fund has been an abysmal failure, plagued by administrators unfamiliar with the cannabis industry and terms that made it indistinguishable from the traditional financial market. The state should create a true publicly funded social equity program to provide low-interest loans to social equity licensees. This fund should provide loans for a full range of needs, including build-out costs.
Farmer’s Operational Relief. Create an appeals process for changes in canopy size and cultivation tier; waive or refund fees and charges associated with transitioning from a conditional license to full licensure; provide various forms of operational and regulatory relief.
Demographic Data Release. To fulfill the State’s equity obligations under the MRTA, it is important to have publicly released demographic data for license types. Medical cannabis companies are required to disclose many data points that the Office uses in its year-end report. We believe the Office should likewise release demographic data, on an aggregate level, by license type for the adult-use market.